Oil prices rise over 2% after Middle East strikes; China’s exports surge on back of AI boom – business live
Brent crude rises over $85 a barrel after US carries out third night of strikes against IranGood morning, and welcome to our rolling coverage of business, the financial markets and the world economy.Oil prices rose more than 2% after the conflict in the Middle East worsened, with the US carrying out a third consecutive night of strikes against Iran. Two tankers came under fire in the strait of Hormuz.Stasis has taken over markets as investors wait for the latest twist in the Iran conflict and br
Overview
Brent crude rises over $85 a barrel after US carries out third night of strikes against Iran
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
Oil prices rose more than 2% after the conflict in the Middle East worsened, with the US carrying out a third consecutive night of strikes against Iran. Two tankers came under fire in the strait of Hormuz.
Stasis has taken over markets as investors wait for the latest twist in the Iran conflict and brace for higher energy prices to filter through to economies. Brent crude has surged even higher, topping $84 a barrel, while European gas prices have shot up to levels not seen in three months.
Continued export strength, mostly driven by AI, points to a better second half, coupled with a more expansionary policy mix, accelerated fiscal spending and mild monetary easing, as well as a de-escalation of the situation in the Middle East, which will benefit China through lower oil prices.
But domestic demand remains a drag. Retail sales remain pretty flat and fixed asset investment was negative last month.
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That would be considered high for a small export-focused country; for the world’s second-largest economy, it is remarkable.
I think exports will remain strong in the second half of the year. Meanwhile, it also puts further pressure on the trade tensions between China and its trading partners, Europe in particular.
9am BST: Bank of England governor Andrew Bailey speech
1.30pm BST: US inflation for June (previous: 4.2%; forecast: 3.8%)
3pm BST: US Federal Reserve chair Kevin Warsh testifies
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Originally published at www.theguardian.com.
